- Joined
- 27 June 2010
- Posts
- 4,324
- Reactions
- 367
JIN has announced an interim dividend of .5c per share. Looks like this company is well positioned for continued growth.
Based on the Internet lotteries division making an annual profit of 4.6 million and a p/e of 8 the share price should be around the 90c mark.
With sales fast approaching $100 million a year I find it highly likely that their license will be renewed. Such a fast and effective retailer selling their product they'd be crazy not to.
Sure there is a risk and any investor should be aware of that. A company like this should be left for the speculative part of your portfolio. But I am certainly enjoying the rise in the share price.
They have the exclusive license to sell tickets in NSW until December 2013 and sell them with Tatts in Victoria.
.
How long have they had these licences? And why hasn't the market factored these low P/Es into the share price?
When does their licence with Tatts in Victoria expire?
...............And why hasn't the market factored these low P/Es into the share price?................
Its only selling at 4 X 2011 profit and is 45 cents, Carsales, Seek, Wotif, all trade between 18-25X. Put a 12X earning on this stock and it trades at $1.20. Its only a small stock and has been ignored by the market,with a solid results in 2011 and with 10 million in cash this stock should do extremely well.
Anyway, check it out, it should do well.
JIN has announced an interim dividend of .5c per share. Looks like this company is well positioned for continued growth.
Based on the Internet lotteries division making an annual profit of 4.6 million and a p/e of 8 the share price should be around the 90c mark.
They have 10.2 million in cash at the bank so its a pretty safe stock.
That cash number is a bit misleading. Most of "their" cash is actually client cash from winnings yet to be paid out and deposits made by customers in order to buy lottery tickets.
The cash balance in the 2011 Annual Report (Page48) is 11.770 million dollars. Of that amount 4.285 million is customers accounts so the real balance is 7.485 million which is pretty good for a company currently valued at 12 million who made 4.8 million profit in 2011.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?